Fitch: U.S. Money Funds, European Banks Show Signs of Easing

Fitch Ratings released a report, “U.S. Money Funds and European Banks: Signs of Easing,” updating its analysis of the exposures of U.S. prime money market funds (MMFs) to banks globally as of the end of September. Based on a sample of the ten largest U.S. prime MMFs, Fitch Ratings’ study reveals that:

Exposure to euro-zone banks increased by 16% since end-August, the third consecutive monthly increase, with French bank exposure rising by over 40%

The proportion of euro-zone and European bank exposure in the form of repo declined moderately, a reduction in secured exposure that might indicate stronger risk appetite

Japanese banks remained the largest single country exposure at 13.1% of total MMF assets